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Eli Lilly Launches Discounted Versions of Obesity Drug Zepbound
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Eli Lilly and Company (LLY - Free Report) announced the launch of single-dose vials of its popular obesity drug, Zepbound (tirzepatide), to meet supply shortages in response to high demand. These 2.5 mg and 5 mg single-dose vials are priced at least 50% lower than the list price of competing GLP-1 medicines for obesity. A four-week supply of the 2.5 mg vials has been priced at $399 while the same for the 5 mg dose will cost $549. Zepbound is presently available in a single-dose pen (autoinjector). The vials should be easier to manufacture than the pens and can help improve supply.
These cheaper versions of Zepbound will be available through Lilly’s direct-to-consumer website called LillyDirect for self-pay by patients with a valid on-label prescription. The availability of these Zepbound single-dose vials is expected to broaden access for obesity patients especially those without insurance. The launch of single-dose vials also lowers the need for people to use compounded versions of tirzepatide.
Several pharmacies, weight loss clinics and medical spas are selling/making compounded versions of Mounjaro and Zepbound. Lilly has time and again warned against the use of custom-made products claiming to contain tirzepatide that are made or distributed by compounding pharmacies. These products are not approved by the FDA and can pose serious health risks to users.
Year to date, Lilly’s stock has risen 63.7% compared with an increase of 27.1% for the industry.
Image Source: Zacks Investment Research
LLY Improves Tirzepatide Supply to Meet High Demand
Zepbound and Lilly’s type-II diabetes drug, Mounjaro includes the same compound tirzepatide, a dual GIP and GLP-1 receptor agonist (GIP/GLP-1 RA). The GLP-1 segment is an important class of drugs for multiple cardiometabolic diseases and is gaining significant popularity. Per research conducted by Goldman Sachs, the obesity market in the United States is expected to reach $130 billion by 2030.
Despite a short time on the market, Mounjaro and Zepbound have become key top-line drivers for Lilly in 2024, with demand rising rapidly. Mounjaro and Zepbound generated sales of almost $6.7 billion in the first half of 2024, accounting for 44% of the company’s total revenues.
Demand for Mounjaro and Zepbound is extremely strong and exceeds supply. Lilly faced supply shortages in the first half of the year due to skyrocketing demand. Lilly has built, upgraded or acquired new facilities in the United States and Europe to improve supply, and the benefit of these investments is showing now as the supply chain for these drugs has improved. With supply improving, Lilly has better visibility on its production plans for Mounjaro and Zepbound for the year and planned launches of Mounjaro in international markets.
Lilly is investing broadly in obesity and has 11 new molecules currently in clinical development, including two late-stage candidates, orforglipron, an oral GLP-1 small molecule and retatrutide, a GGG tri-agonist. Several phase III data readouts are expected in 2025.
Other Players in the GLP-1 Market
Lilly’s tirzepatide medicines face strong competition from Novo Nordisk’s (NVO - Free Report) semaglutide. Semaglutide is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy injection for weight management. Novo Nordisk is also working to improve the supply of Wegovy in response to rising demand but has not been as successful as Lilly in its efforts. The launch of these affordable versions of Zepbound could put further pressure on Novo Nordisk.
Viking Therapeutics (VKTX - Free Report) is developing VK2735 as a subcutaneous injection and as an oral pill for treating obesity. The candidate has demonstrated superior weight reduction in clinical studies. Viking Therapeutics plans to advance the subcutaneous formulation to late-stage development and start a mid-stage study on the oral formulation before 2024-end. Viking’s stock was down around 6.2% on Tuesday as Lilly’s latest move to strengthen its presence in the obesity market creates further pressure on this small biotech whose obesity candidate is nearing late-stage development.
Amgen (AMGN - Free Report) also has a GLP-1 receptor candidate, MariTide (maridebart cafraglutide), for obesity in its pipeline. Top-line 52-week data from the phase II study on MariTide in adults with overweight or obesity is expected in late 2024. Amgen is planning to conduct a comprehensive phase III program on the candidate across obesity, obesity-related conditions and type-II diabetes. Amgen plans to begin a phase II study on the candidate in type II diabetes in late 2024.
Image: Bigstock
Eli Lilly Launches Discounted Versions of Obesity Drug Zepbound
Eli Lilly and Company (LLY - Free Report) announced the launch of single-dose vials of its popular obesity drug, Zepbound (tirzepatide), to meet supply shortages in response to high demand. These 2.5 mg and 5 mg single-dose vials are priced at least 50% lower than the list price of competing GLP-1 medicines for obesity. A four-week supply of the 2.5 mg vials has been priced at $399 while the same for the 5 mg dose will cost $549. Zepbound is presently available in a single-dose pen (autoinjector). The vials should be easier to manufacture than the pens and can help improve supply.
These cheaper versions of Zepbound will be available through Lilly’s direct-to-consumer website called LillyDirect for self-pay by patients with a valid on-label prescription. The availability of these Zepbound single-dose vials is expected to broaden access for obesity patients especially those without insurance. The launch of single-dose vials also lowers the need for people to use compounded versions of tirzepatide.
Several pharmacies, weight loss clinics and medical spas are selling/making compounded versions of Mounjaro and Zepbound. Lilly has time and again warned against the use of custom-made products claiming to contain tirzepatide that are made or distributed by compounding pharmacies. These products are not approved by the FDA and can pose serious health risks to users.
Year to date, Lilly’s stock has risen 63.7% compared with an increase of 27.1% for the industry.
Image Source: Zacks Investment Research
LLY Improves Tirzepatide Supply to Meet High Demand
Zepbound and Lilly’s type-II diabetes drug, Mounjaro includes the same compound tirzepatide, a dual GIP and GLP-1 receptor agonist (GIP/GLP-1 RA). The GLP-1 segment is an important class of drugs for multiple cardiometabolic diseases and is gaining significant popularity. Per research conducted by Goldman Sachs, the obesity market in the United States is expected to reach $130 billion by 2030.
Despite a short time on the market, Mounjaro and Zepbound have become key top-line drivers for Lilly in 2024, with demand rising rapidly. Mounjaro and Zepbound generated sales of almost $6.7 billion in the first half of 2024, accounting for 44% of the company’s total revenues.
Demand for Mounjaro and Zepbound is extremely strong and exceeds supply. Lilly faced supply shortages in the first half of the year due to skyrocketing demand. Lilly has built, upgraded or acquired new facilities in the United States and Europe to improve supply, and the benefit of these investments is showing now as the supply chain for these drugs has improved. With supply improving, Lilly has better visibility on its production plans for Mounjaro and Zepbound for the year and planned launches of Mounjaro in international markets.
Lilly is investing broadly in obesity and has 11 new molecules currently in clinical development, including two late-stage candidates, orforglipron, an oral GLP-1 small molecule and retatrutide, a GGG tri-agonist. Several phase III data readouts are expected in 2025.
Other Players in the GLP-1 Market
Lilly’s tirzepatide medicines face strong competition from Novo Nordisk’s (NVO - Free Report) semaglutide. Semaglutide is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy injection for weight management. Novo Nordisk is also working to improve the supply of Wegovy in response to rising demand but has not been as successful as Lilly in its efforts. The launch of these affordable versions of Zepbound could put further pressure on Novo Nordisk.
Viking Therapeutics (VKTX - Free Report) is developing VK2735 as a subcutaneous injection and as an oral pill for treating obesity. The candidate has demonstrated superior weight reduction in clinical studies. Viking Therapeutics plans to advance the subcutaneous formulation to late-stage development and start a mid-stage study on the oral formulation before 2024-end. Viking’s stock was down around 6.2% on Tuesday as Lilly’s latest move to strengthen its presence in the obesity market creates further pressure on this small biotech whose obesity candidate is nearing late-stage development.
Amgen (AMGN - Free Report) also has a GLP-1 receptor candidate, MariTide (maridebart cafraglutide), for obesity in its pipeline. Top-line 52-week data from the phase II study on MariTide in adults with overweight or obesity is expected in late 2024. Amgen is planning to conduct a comprehensive phase III program on the candidate across obesity, obesity-related conditions and type-II diabetes. Amgen plans to begin a phase II study on the candidate in type II diabetes in late 2024.
Lilly’s Zacks Rank
Lilly has a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Eli Lilly and Company Price and Consensus
Eli Lilly and Company price-consensus-chart | Eli Lilly and Company Quote